caroline: from bloomberg world headquarters. romaine: let's get you caught up. jaw-dropping jobs data and markets at a record high. joe: the question is, "what'd you miss?" caroline: jaw-dropping data, no matter what is thrown at markets they take it in stride. high inflation?

no problem. a massive mess in u.s. jobs growth and another record high. investors march on even the weakness intact this week. and real growing pains in this recovery, surging job openings, company saying they're having trouble recruiting workers. minorities and women still filling the unevenness of the recovery. joe, labor day, your favorite day today and you will dig into the intricacies but first the market reaction was standout. joe: it was weird, the number, no one was expecting that we can buy number, lot head scratching, still ambiguous what the story is. as soon as the never hit, it was clear we are not going to get any sort of taper anytime soon. you look at the nasdaq 100, companies most exposed to early tightening, immediate light up.

market interpreting this as we are not getting any tapers soon but probably still things are ok so by stocks. romaine: yes and you see that reflected in fed fund futures. not only the jobs data today but too big inflation reports the middle of next week. wednesday, the cpi and ppi thursday here. the fed looking up full employment, inflation and right now it does not appear that date is going to give them what they are looking for to come off the floor here. right now the expectations remain, late 2022 maybe into 2023, before we see significant movement in fed right. -- in fed rates. caroline: this time last year the fed was worrying about asset prices, they were worried if there were hits to risk-taking sentiment. ipo's and spacs, today we saw that, renaissance ipo up, game stock -- gamestop a small game,

and crypto. joe: for more economic policy, economist elise gould for more on today's jobs report. lots to dive into and thank you for joining us. clearly a substantial miss on the headline and there are theories why. when you look at the number overall, what is the main thing that stands out to you, in terms of interbeing factors? >> certainly, it was a surprise to me as well as many others, right? we were looking at expectations of about a million or a million and a bit more. now we are seeing only 260,000 jobs. that was a very surprising number. we do see that, underlying that number, a lot of the gains were in leisure and hospitality. again, the industry will be some most losses, that is slowly rebounding. so that was a positive sign, for

sure, even though the topline number was particularly troubling. joe: even when you look at those 260,000, and i know there's talk about how long it will take for us to dig us out of the employment whole, but i wonder -- hole, but i wonder if you saw anything in this report you found encouraging with regard to trendlines that may be showing we are on the right path here? >> i think one topline number we saw was the unemployment rate, which ticked up a little bit and that is good news, because we saw many people coming back into the labor force. the people who had left, people who were scared, people who do not think there were job opportunities for them, they have been coming back. they came back at the highest levels we have seen in the past six months, they came back. so i think that's a positive sign look into the future in terms of what we need to translate those into, employment growth numbers. a lot of them didn't translate

to implement growth but we need to see more of them. caroline: what about wage growth? romaine mentioned we have inflation data next week. it was impressive we saw that her than expected wage increase than had been expected. is that good, bad, different? >> i still think we have to be careful when we look at different wage growth measures. because a lot of it is reflecting the changing composition of the workforce. initially, when we saw stronger wage growth over the last few months, a lot of that really over the last year, had to do with the fact that the bottom fell out of the labor market, right? so many people lost jobs were lower wage workers in lower wage industries and lower weight service sectors, those occupations that are disproportionately low wage. also low our jobs. when reese -- hour jobs. and that will be moderated as many low wage workers return and i am optimistic they will

return, hopefully, soon. joe:, 331,000 leisure and hospitality workers having returned to the job in april. but we are still as you say, and huge hole. one of the first discussion points that came up, 831, people pointing to the persistence of the ui a expansion when you couple that with the anecdotal claims from restaurants and hotels that they have a hard time hiring. when you look at that, really big hole, is there reason to think that expanded unemployment benefits are slowing the recovery in this area? >> no, actually, i do not think there is much evidence to suggest a. when researchers looked at what happened with the enhanced benefits of the ector $600 last year, that research conclusively said it did not have an impact on labor force participation. and the data we are seeing today shows labor force participation grows.

people are looking for more jobs. we did have that pick up in leisure and hospitality, so that is going to meet that demand. i think i'm concerned about supply constraints. i would think more about what has happened to women in this recovery and in this recession. and those women as caregivers, and not have any adequate safety net, to be able to really reenter the labor force. and that is what we saw, one of the troubling signs we saw today. even though the labor force picked up, it was men who increased to their participation, and not women. women are continuing to follow. caroline: we are going to dig into that more after this break and discuss some of the ongoing inequalities within the labor data. elise gould, economic policy senior economist. and we want to discuss that disparate jobs picture among women and minorities. stick with us for that. this is bloomberg. ♪

>> i believe we will reach full employment next year. but today's numbers also show that we are not yet finished. >> for people who have been saying oh my gosh, the fed needs to normalize quantitative easing, today's jobs report is an example of, we have a long way to go. >> more people look for jobs in april that in the previous month so we are seeing pre--- positive signs. >> the labor market can only recover it so much as they are able to address the full scope of the public health crisis. >> this gal of the numbers we are looking at, the gross inflows and outflows, are unprecedented. >> is that demand or more likely supply. >> we are still seeing stronger growth in sectors that were not

necessarily whether job losses initially were. romaine: some of the reaction we got today from financial leaders and government officials about today's jobs report. an interesting report and one part of that that has a ways to go is some inequities we have seen exposed by the covid crisis. they existed long before then. you wonder whether the jobs data and the trendline we have been seeing over the past few months, whether that is managing to address those gaps? joe: that is exactly right and we have been talking about this theme a lot. prior to the crisis, prior to last march, we had started to see a compression between the unemployment rate of white americans, black americans, other races. and then that is what happens after a long expansion and it what we want to see. that got blown out, a lot of progress backtracked. we made some reversal of that but still a long way to go now. caroline: a long way to go. the fed has its ionic come of

course. this is what changed the theory entirely, before it was about overall unemployment. now a sharp eye is on that everyone needs to benefit as we recover. joe: exactly. let's bring back in elise gould, senior economist at the economic policy institute. thank you for joining us. this is important societally and for the fed, so it feels confident it has some sense of employment, when it sees the benefit of employment spread broadly. how far do we have to go before we can start to see something that resembles the precrisis levels, where we saw an economy that benefited a lot of people? >> that is the question and i think it is right to pay attention to those people who are historically more disadvantaged in the labor market. but make sure the recovery reaches all corners of the labor market. by my estimation we now have a

job shortfall between 9 million and 11 million jobs. you cannot simply look at the 8.2 million jobs your we had now compared to fed work my 2020. in the last year, we would have population growth, and continue to see a great economy at the pandemic had not hit. that is why i put the shortfall at 9,000,000-11 million jobs, a pretty big number, particularly when we are looking at such a small increase in the last month. romaine: so when we talk about some groups you are mentioning, women. we saw on the data come up women dropping out of the workforce last month at an alarming rate. some of this seems to be tied to lingering unresolved issues with regard to school systems and childcare and the like as well. do you think that is rightsizing itself? i know we are heading into the summer here. at some point you see that rightsizing itself, or will we be get back to the same issues and burdens women seem to have to bear with regard to childcare? >> in a lot of ways it is up to

policymakers. what happens a what kind of support women and particularly mothers can have, in terms of caregiving roles. as you said, of children. but also women disproportionately take care of older family members. spouses, other relatives, particularly when you think about a pandemic and health issues. this is not a new phenomenon. we have seen women's labor force participation soften a lot in the last 20 years. this did not happen in many of our peer countries and many well-off countries that continue to see women's labor force participation rise through the 2000. those countries have better childcare policy and better paid family and medical leave. if we approach that agenda and work on those caregiving responsibilities, we can have full participation of women in the labor force. that would be a better thing for women, in terms of financially in families. also a better thing for the economy.

caroline: it is interesting, many reading what they wanted to read in this jobs data, and many feeling perhaps this backs up resident biden's focus on wanting to pass further stimulus. particularly when we look at the american families plan to bring a support system to people with children and elders to care for, and tackle what many are deeming, a care crisis. do you think we might see some passing of that policy? how helpful would it be to get the 11 million people back to work, the policy? >> i think it would be a game changer. to really take on these issues. these are not new issues. they were magnified in the pandemic because of the nature of the recession. at has hurt women proportionally. at us hurt many workers in certain sectors. was school closures and daycare closures it shows head on what is going on and what is keeping many women out of the labor force. also need to take on problems in the caregiving world, unpaid

caregiving, and also the paid workforce, where many women workers and women of color in particular, are working for very low wages. and we are going to have to see an increase in those kind of jobs anyway as we have an aging workforce. it is not just about caring for young children, it is also about caring for our elderly. romaine: well said, elise gould, always great to catch up with you. are senior economist, and we cover this issue a lot. we put together special report, bloomberg money any quality. it focuses on changes made in corporate america, specifically in the finance industry, addressing those in equities. you can catch that tonight at 7:00 p.m. new york time. caroline: you will not want to miss it. coming up, reinventing the internet. how a new launch of the internet computer could be a new milestone for blockchain. next. this is bloomberg. ♪

romaine: welcome back to "what'd you miss?" we are getting word several cabinet members have been meeting with the president about this jobs report and the employment situation. the secretaries of labor, commerce, hud, and others. as soon as we get word from them we will bring you what they have to say. that is the picture you're watching now outside. caroline: that is a picture you're watching outside the white house. caroline: reaction on that. and now the internet computer, looking to turn the public internet into a decentralized computer. joe, it could be a big thing in terms of diversifying away from

the likes of aws, and centralized necessities that serve our computer and internet needs? joe: exactly right and a lot of excitement about the potential of decentralized blockchain based architectures. to rethink the topography of the internet, including anything called the internet computer, blockchain that runs at web speed, unlimited capacity, ending the dependence on centralized server fronts. joining us now the chief scientist of a foundation, we know blockchain's art decentralized but they tend to be costly and computationally expensive with low throughput. how does your organization attempt to solve the problem? >> well, i mean, the internet computer project is the product of many years of r&d. we have a huge team working on this, with research in zurich,

palo alto, tokyo and remote teams. it is a really big effort and it has taken years to get here. we have reached this important step, which is, placing governance of a network into the public. caroline: for layperson, anyone just grasping what blockchain means, trying to understand what your internet computer means, tell us how it might change the way in which we use the internet , use social media, use certain apps? >> well, blockchain enables you to build things using something called stock contracts. contracts are a new and profoundly different and arguably superior form of software. of course the whole world runs on software so if you crate any form of software it can be very disruptive.

these contracts enable you to reimagine how you build. . systems and services romaine: i am one of the simple people here, probably, i'm curious about the intent? when you think about the original internet, the intentions were pretty good. and for a while it seemed to work pretty well. i guess it still does. what is to prevent what you are working on to somehow devolve into what the current internet already has? human beings are still going to be part of this process and we are who we are. >> the internet computer protocol relies upon decentralization for its security, so it combines these special note machines, that are -- special node machines run from independent parties. it is not possible for a physical or internet computer to be supplied by one company, say. the nature of the blockchain is that it relies upon combining

computer power from different parties. romaine: right. >> to operate. joe: you mentioned those run by third parties and if i wanted to i could set up an ethereum note on my computer. -- note on my computer. there are some notice -- nodes that are costly to run. can anyone spin up node, at home, or will be so costly it will be just run by have love them? >> first, the internet computer works in a different way than any other blockchain you may have come across. actually today, a lot of blockchain's run largely on the cloud. the internet computer runs entirely on dedicated hardware. edits hosted by the special node computer machines installed by independent parties and

independent data centers around the world. the miracle of the internet computer is that it is able to create a blockchain by combining the computing capacity of these node machines around the world, in a way that allows it to run at web speed and to increase its capacity with demand, and run very efficiently. and this means that you can build things on a blockchain now that you never would have imagined would have been possible. so you can build websites, internet services, enterprise systems. joe: yeah. >> and you're building them using smart contracts. so you can leverage the features a blockchain such as tokenization. we think we will see an explosion and things like tokenized social media. caroline: i know you have big backing from the likes of andreessen horowitz, and they see big value in this. but why? what was the cause?

was that that you did not like the idea that certain big tech companies control the internet to a certain extent? >> and recent was a backer but in that round i think there were a hundred vc's and hedge funds and before that it was a decentralized round with several hundred participants from all around the internet. you know, we just want to, you know today come of that internet is a network that connects everybody and everything. when you build systems and services you build on private infrastructure. we wanted to extend the internet, so that you can, it is also humanities compute platform. caroline: humanities compute platform and we will see how it continues to evolve. we will look at how your event has occurred today. and notable on the day that don't quite -- doge coin mike get a click tomorrow on s&l. -- doge coin mike in a click

tomorrow on snl. romaine: you can watch it on bloomberg. caroline: that does it for "what'd you miss?" joe: bloomberg technology is up next. have a great weekend. this is bloomberg. ♪

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